Hon Giz Watson questions the Minister for Resources Development about the economic evaluation of the Oakajee port project, specifically regarding costs to local shires and the potential impact on windsurfing tourism. The Minister acknowledges awareness but downplays the negative economic impact on windsurfing.

AnsweredQoN 920Legislative Council
Asked
10 October 2000
Portfolio
Resources Development

QuestionView source ↗

(1) Is the Minister for Resources Development aware of public concerns expressed by the Shires of Chapman Valley, Geraldton, Mullewa, Greenough and Northampton about expected capital and recurrent costs totalling $47m associated with the proposed Mid West Iron and Steel project? (2) Is the Minister also aware of the Tourism Coordinates study of 1997 which estimated the economic benefits from windsurfing tourism at “spot X”, in the Oakajee port proposal area, as around $3m per year, which over 30 years of the project would amount to a lost opportunity cost of at least $90m? (3) Why were these economic values amongst a range of lost opportunity costs which were not included in the Sinclair Knight Merz Oakajee port economic evaluation of November 1997? (4) Will the failure to include these economic values affect the economic evaluation of the Oakajee port project? (5) Will the Minister ensure that these economic considerations and a range of lost opportunity costs, which were not included in the Sinclair Knight Merz Oakajee port economic evaluation, be included in a proper economic evaluation of the Oakajee port project? Answered on 14 November 2000 The Minister

AnswerView source ↗

Answered
14 November 2000
Response time
35 days
(1) Yes (2) The study referred to found that the total economic benefit of windsurfing to the greater Geraldton region was estimated at $3.008 Million on page 15 of the report. However the report also went on to say (page 22) "If the industrial/port development does take place the consultants do not see the windsurfing industry in the region being seriously affected presuming there is no major negative impact on Coronation Beach". Other studies have shown that Coronation Beach will be effectively unaffected by developments at Oakajee. Therefore it could be concluded that minimal economic impact, if any, will be felt by the windsurfing industry as a result of proposed developments at Oakajee. (3-5) Not applicable.
(2) Is the Minister also aware of the Tourism Coordinates study of 1997 which estimated the economic benefits from windsurfing tourism at “spot X”, in the Oakajee port proposal area, as around $3m per year, which over 30 years of the project would amount to a lost opportunity cost of at least $90m? (3) Why were these economic values amongst a range of lost opportunity costs which were not included in the Sinclair Knight Merz Oakajee port economic evaluation of November 1997? (4) Will the failure to include these economic values affect the economic evaluation of the Oakajee port project? (5) Will the Minister ensure that these economic considerations and a range of lost opportunity costs, which were not included in the Sinclair Knight Merz Oakajee port economic evaluation, be included in a proper economic evaluation of the Oakajee port project? Answered on 14 November 2000 The Minister Replied: (1) Yes (2) The study referred to found that the total economic benefit of windsurfing to the greater Geraldton region was estimated at $3.008 Million on page 15 of the report. However the report also went on to say (page 22) "If the industrial/port development does take place the consultants do not see the windsurfing industry in the region being seriously affected presuming there is no major negative impact on Coronation Beach". Other studies have shown that Coronation Beach will be effectively unaffected by developments at Oakajee. Therefore it could be concluded that minimal economic impact, if any, will be felt by the windsurfing industry as a result of proposed developments at Oakajee. (3-5) Not applicable.
(3) Why were these economic values amongst a range of lost opportunity costs which were not included in the Sinclair Knight Merz Oakajee port economic evaluation of November 1997? (4) Will the failure to include these economic values affect the economic evaluation of the Oakajee port project? (5) Will the Minister ensure that these economic considerations and a range of lost opportunity costs, which were not included in the Sinclair Knight Merz Oakajee port economic evaluation, be included in a proper economic evaluation of the Oakajee port project? Answered on 14 November 2000 The Minister Replied: (1) Yes (2) The study referred to found that the total economic benefit of windsurfing to the greater Geraldton region was estimated at $3.008 Million on page 15 of the report. However the report also went on to say (page 22) "If the industrial/port development does take place the consultants do not see the windsurfing industry in the region being seriously affected presuming there is no major negative impact on Coronation Beach". Other studies have shown that Coronation Beach will be effectively unaffected by developments at Oakajee. Therefore it could be concluded that minimal economic impact, if any, will be felt by the windsurfing industry as a result of proposed developments at Oakajee. (3-5) Not applicable.
(4) Will the failure to include these economic values affect the economic evaluation of the Oakajee port project? (5) Will the Minister ensure that these economic considerations and a range of lost opportunity costs, which were not included in the Sinclair Knight Merz Oakajee port economic evaluation, be included in a proper economic evaluation of the Oakajee port project? Answered on 14 November 2000 The Minister Replied: (1) Yes (2) The study referred to found that the total economic benefit of windsurfing to the greater Geraldton region was estimated at $3.008 Million on page 15 of the report. However the report also went on to say (page 22) "If the industrial/port development does take place the consultants do not see the windsurfing industry in the region being seriously affected presuming there is no major negative impact on Coronation Beach". Other studies have shown that Coronation Beach will be effectively unaffected by developments at Oakajee. Therefore it could be concluded that minimal economic impact, if any, will be felt by the windsurfing industry as a result of proposed developments at Oakajee. (3-5) Not applicable.
(5) Will the Minister ensure that these economic considerations and a range of lost opportunity costs, which were not included in the Sinclair Knight Merz Oakajee port economic evaluation, be included in a proper economic evaluation of the Oakajee port project? Answered on 14 November 2000 The Minister Replied: (1) Yes (2) The study referred to found that the total economic benefit of windsurfing to the greater Geraldton region was estimated at $3.008 Million on page 15 of the report. However the report also went on to say (page 22) "If the industrial/port development does take place the consultants do not see the windsurfing industry in the region being seriously affected presuming there is no major negative impact on Coronation Beach". Other studies have shown that Coronation Beach will be effectively unaffected by developments at Oakajee. Therefore it could be concluded that minimal economic impact, if any, will be felt by the windsurfing industry as a result of proposed developments at Oakajee. (3-5) Not applicable.
Answered on 14 November 2000 The Minister Replied: (1) Yes (2) The study referred to found that the total economic benefit of windsurfing to the greater Geraldton region was estimated at $3.008 Million on page 15 of the report. However the report also went on to say (page 22) "If the industrial/port development does take place the consultants do not see the windsurfing industry in the region being seriously affected presuming there is no major negative impact on Coronation Beach". Other studies have shown that Coronation Beach will be effectively unaffected by developments at Oakajee. Therefore it could be concluded that minimal economic impact, if any, will be felt by the windsurfing industry as a result of proposed developments at Oakajee. (3-5) Not applicable.

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